Reducing Offer Price Due To COVID-19 Financial Uncertainty

Thrugelmir

Dunbar82 said:

 just don't want to end up in negative equity the very day I move in. 

How does a 5% reduction protect you against that risk?  

RelievedSheff

Ftb2019_3 said:

RelievedSheff said:

£9k over the period of the mortgage is nothing and don't forget you also have the costs involved with solicitors, estate agents, mortgage brokers, surveys, etc. to take into account so you won't be £9k up on the deal at all.

You need to make your vendor aware sooner rather then later that you are looking to back out of this deal. The longer you drag this on the longer you are leading them up the garden path.

Personally I would tell you where to stick your money. You have obviously been happy with the price you have agreed on the property since November and are now looking to reduce the offer less than a month before completion.

Things change though, same as vendors would change buyer if theyd been offered an extra 10k.

Not always. Sometimes the position the buyer is in is more important than the offer.

RelievedSheff

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

I think you are right in that that the OP clearly has no attachment to this property given they are prepared to lose it for the sake of £9k. Just a shame they have led the vendor a merry dance for 6 months when they could have found a serious buyer instead.

MaxiRobriguez

craig1123 said:

Realisitically to compensate for the financial uncertainty and potential for reduced income you would need a massive discount to ease those concerns. If I was the seller and you came to me asking to pay 9000 less I would think you were taking adavantage of the situation. How much cheaper would your mortgage be if you paid 9000 less. About £40? If things are so tight that this would be the difference between affording the mortgage and not then you shouldnt be buying.

I agree with Craig. 

If you have genuine concerns over your financial situation (which in times like these is completely warranted) then £9,000 off a mortgage is not a game changer and reeks of trying to take advantage of a seller who needs the chain to maintain.

If I was the seller, I would tell you to do one, primarily because if you'd act like that with a month to completion then I'd expect you to come knocking for another discount closer to completion when quarterly GDP figures are known and furlough schemes have potentially ended, causing more public worry.

If you want to lower your offer for genuine reasons that that amount helps you have confidence in your own finances then you should probably attempt it (because what you've agreed to pay is clearly now too expensive for you). Just don't be surprised if your seller who isn't your mate isn't happy with the proposal.

Alternatively you can just walk away.

Crashy_Time

Thrugelmir said:

Dunbar82 said:

 just don't want to end up in negative equity the very day I move in. 

How does a 5% reduction protect you against that risk?  

It doesn`t, nowhere near IMO.

Crashy_Time

MaxiRobriguez said:

craig1123 said:

Realisitically to compensate for the financial uncertainty and potential for reduced income you would need a massive discount to ease those concerns. If I was the seller and you came to me asking to pay 9000 less I would think you were taking adavantage of the situation. How much cheaper would your mortgage be if you paid 9000 less. About £40? If things are so tight that this would be the difference between affording the mortgage and not then you shouldnt be buying.

I agree with Craig. 

If you have genuine concerns over your financial situation (which in times like these is completely warranted) then £9,000 off a mortgage is not a game changer and reeks of trying to take advantage of a seller who needs the chain to maintain.

If I was the seller, I would tell you to do one, primarily because if you'd act like that with a month to completion then I'd expect you to come knocking for another discount closer to completion when quarterly GDP figures are known and furlough schemes have potentially ended, causing more public worry.

If you want to lower your offer for genuine reasons that that amount helps you have confidence in your own finances then you should probably attempt it (because what you've agreed to pay is clearly now too expensive for you). Just don't be surprised if your seller who isn't your mate isn't happy with the proposal.

Alternatively you can just walk away.

As most people will be looking for a further discount at that point though you don`t have very much power as a seller in these circumstances?

RelievedSheff

Crashy_Time said:

MaxiRobriguez said:

craig1123 said:

Realisitically to compensate for the financial uncertainty and potential for reduced income you would need a massive discount to ease those concerns. If I was the seller and you came to me asking to pay 9000 less I would think you were taking adavantage of the situation. How much cheaper would your mortgage be if you paid 9000 less. About £40? If things are so tight that this would be the difference between affording the mortgage and not then you shouldnt be buying.

I agree with Craig. 

If you have genuine concerns over your financial situation (which in times like these is completely warranted) then £9,000 off a mortgage is not a game changer and reeks of trying to take advantage of a seller who needs the chain to maintain.

If I was the seller, I would tell you to do one, primarily because if you'd act like that with a month to completion then I'd expect you to come knocking for another discount closer to completion when quarterly GDP figures are known and furlough schemes have potentially ended, causing more public worry.

If you want to lower your offer for genuine reasons that that amount helps you have confidence in your own finances then you should probably attempt it (because what you've agreed to pay is clearly now too expensive for you). Just don't be surprised if your seller who isn't your mate isn't happy with the proposal.

Alternatively you can just walk away.

As most people will be looking for a further discount at that point though you don`t have very much power as a seller in these circumstances?

You kind of do though. You can always just take the property off the market. 

onetimeatponycamp

RelievedSheff said:

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

I think you are right in that that the OP clearly has no attachment to this property given they are prepared to lose it for the sake of £9k. Just a shame they have led the vendor a merry dance for 6 months when they could have found a serious buyer instead.

That's a bit unfair. The buyer was serious, and it seems the seller was dragging their feet. Arguably it's the seller's fault for it all dragging into a time when CV has become an issue and the world has changed. If the seller had been quicker with everything this could have already been done and dusted.

RelievedSheff

onetimeatponycamp said:

RelievedSheff said:

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

numbercruncher8 said:

Without further details I don't think anyone is going to give you a right answer.
Obviously the seller will be annoyed. But does it make you a bad person? I'd say it depends. 
What has the surrounding market done since November? What sort of properties are available in the vicinity? What sort of property would you go for if your offer was rejected and the owner refused to deal with you? How is the current pricing comparing to that? If you are already getting a good deal, the chances of reduction is remote, if you have offered 100% of a 'kite-flying' price, the chances are better. Nobody really can tell what ballpark you are in, unless you are prepared to post the link of the property.
If you're prepared to lose it over £9k I'd reckon you don't have a large attachment to it or are ambivalent.... what I would say is that anecdotally 'forever home' is a bit of a misnomer. Plenty of people I have known have missed out on one and it seems terrible at the time, but invariably another one comes up at another time.

Personally I think the surrounding area property comparables (current and sold) would be a much better guide than asking on here, next would be your own attitude towards the property and opinion on where the market is going in future relative to the time you might live in it.

I think you are right in that that the OP clearly has no attachment to this property given they are prepared to lose it for the sake of £9k. Just a shame they have led the vendor a merry dance for 6 months when they could have found a serious buyer instead.

That's a bit unfair. The buyer was serious, and it seems the seller was dragging their feet. Arguably it's the seller's fault for it all dragging into a time when CV has become an issue and the world has changed. If the seller had been quicker with everything this could have already been done and dusted.

Not unfair at all. The seller was waiting for their new build to be completed so hardly dragging their feet.

[Deleted User]

£9k isn't enough. 10% minimum, more like 20% reduction is realistic.